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In 2017, Bitcoin has bounced back from several severe setbacks, so many users believe that there is still a lot of gas left in the tank for the pioneer cryptocurrency.
Fresh from attending both Consensus and the Token Summit in New York and hearing from those who have had conversations with fund managers, Timothy Suggs of Expanse is positive that another cryptocurrency market surge is set to happen in the coming months.
“It seems more and more institutional money will be finding its way to the market. This alongside the continued growth of amateur investors who are getting involved after hearing success stories from many of their friends and family members who have enjoyed some incredible returns on their investments.”
Co-Founder and CEO at SatoshiLabs, Alena Vranova tells Cointelegraph that new all-time highs can still be reached by Bitcoin this year, noting that she retains a bullish outlook on Bitcoin as the cryptocurrency with the best developed market, code and services.
She says:
“This year’s all-time high may not have been hit yet. I’d expect that resolution of the network combustion and a wave of newcomers to Bitcoin will add to Bitcoin price growth.”
Short-lived crash
The speedy recovery after every major retracement since the beginning of 2017 is a phenomenon that has introduced some uniqueness in the trend pattern of the Bitcoin market.
Kumar Gaurav, Founder and CEO at Cashaa tells Cointelegraph that it seems as if the recent Bitcoin price drop of almost 30 percent down from its all-time high of $2,791 was only a short-time crash like the previous ones in January and March 2017.
Bitcoin price recovered from less than $1,900 to over $2,200 within two days. This reminds us of the fast recovery in April after the drop from $1,300 to $900 and then going back to $1,300 within a month. As of the time of writing, over the past week, Bitcoin increased overall by 15 percent.
He notes that looking at the overall trend of the past two years, if you take out the three short runs leading to the crashes mentioned above, Bitcoin price can be seen as a parabolic curve. What attracts a lot of inquisition is how fast this pattern is moving to an increasingly near-vertical stage.
Gaurav says:
“Since April, we have seen a movement towards this stage, with the most recent run being longer and steeper than any run before it. In this case, if Bitcoin continues to quickly recover and resume a fast growth, we would see it around $10,000 within a year. Otherwise, if it goes back to a slower growth more consistent with the past two years`, it would “only” become around $3,000 within a year. In the long term, if the scaling issue gets solved, we may see it well above $10,000 sooner or later in any case.”
Bitcoin-altcoin relationship
Concerning altcoins, Gaurav notes that the higher the Bitcoin price, the more a crash is expected. With regard to a consequent hedge with major altcoins, without a longer serious Bitcoin crash having happened as of yet, altcoins are increasingly moving parallel to Bitcoin, whereas prior to this time, major altcoins would move in the opposite direction to Bitcoin.
Gaurav adds that in the medium term, as long as the ICO trend continues, Bitcoin and Ether prices will keep receiving an additional boost. Whereas $101 mln were raised via ICO in 2016, this year has $180 mln raised already, with amounts raised per ICO increasing. Bitcoin, therefore, now is not only a cryptocurrency used largely for speculation until recently but is already the fundamental part of a new kind of company.
Other factors
Another aspect is the fact that Bitcoin is now officially recognized as a means of payment in Japan, which increases demand and with more countries including Australia to follow, whereas Russia and India are aiming to start regulating Bitcoin. There are several countries from which a new Bitcoin popularity can further increase its price.
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